On March 15, Alan Company purchased 10,000 shares of Cameo Corp. stock for $35,000. The investment is classified as available-for-sale securities. This is the company's first and only investment in available-for-sale securities. On June 30, the stock had a fair value of $34,000. Alan should do which of the following:
A) Record a debit to the Fair Value Adjustment-AFS account.
B) Record an increase to the Unrealized Loss—Equity account.
C) Report a decrease in the Gain on Sale of Investment income statement account.
D) Report an increase in the asset section of the balance sheet.
E) Record an increase to the Unrealized Gain—Income account.
B) Record an increase to the Unrealized Loss—Equity account.
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The communication of attributions is likely to make the feedback receiver ______.
a. feel grateful b. change c. very defensive d. quit
The Claustrophobic Solution, Inc., a residential window and door manufacturer, has the following historical record of earnings per share (EPS) from 2013 to 2017:
The company’s payout ratio has been 60% over the last five years and the last quoted price of the firm’s stock was $10. Flotation costs for new equity will be 7%. The company has 30,000,000 common shares outstanding and a debt-equity ratio of 0.50.
a) If dividends are expected to grow at the same arithmetic average growth rate of the last five years, what is the dividend payment in 2018?
b) Calculate the firm’s cost of retained earnings and the cost of new common equity using the constant growth dividend discount model.
c) Calculate the break-point associated with retained earnings.
d) If the Claustrophobic Solution’s after-tax cost of debt is 9%, what is the WACC with retained earnings? With new common equity?
e) Assuming that the cost of debt is constant, create a marginal cost of capital (MCC) schedule. Be sure to use a Scatter chart and make it a step function.
What is the safety and health research organization created by the 1970 OSH Act?
A. MINERVA B. CUPA-HR C. NIOSH D. OSHRI E. WHO
What is the difference between mandatory, permissive, and illegal bargaining items? Give examples of each.
What will be an ideal response?